Topic choose one brand (productproduct lineserviceidea) of your choice in one country to analyze the impact of culture on consumer behaviour

MKT 201 – INDIVIDUAL ASSIGNMENT

CONSUMER BEHAVIOUR

Lecturer: Trần Tuyết Minh
Name :

Nguyễn Quang Anh

Class :

MKT1614

Student ID:HS160018
Subject

:MKT201


Topic: Choose one brand (product/product line/service/idea) of your choice in one country
to analyze the impact of culture on consumer behaviour.
All assignments should be typed and double -spaced with 11-point font, and must be submitted in
both soft and hard copies. A deduction of 10% of the assignment mark will be applied for each day
of late submission.
Table of content
Structure guideline:
1. Introduction
1.1. Overview of the brand/product/service/idea)
1.2. STP Strategy
1.3. Aims: Analyse the impact of culture on consumer behaviour
2.

Body part
2.1 Definition of culture and related factors
2.2 Definition of consumer behaviour
2.3 Culture of the country (That you chose to analyse)
2.4 Consumer behaviour in purchasing that product in that country
2.5 Analyse the impact of culture on consumer behaviour in that country
3.
Conclusion
4.
References

Assignment:
1.Introduction
1.1 Overview of the Coca-Cola
The Coca-Cola Company, headquartered in Atlanta, Georgia, incorporated in Wilmington, Delaware, is
a beverage company and multinational manufacturer, retailer, and promoter of non-alcoholic beverages
and syrups. USA. This company is best known for its leading and most famous product in the world
Coca-Cola.
Main product:Coca-Cola (often abbreviated as Coca) is a brand of carbonated soft drinks containing
saturated carbon dioxide water produced by The Coca-Cola Company. Coca- Cola was developed by
pharmacist John Pemberton in the late 19th century with the original purpose of being a medicine
against headaches and fatigue. However, then an American businessman, Asa Griggs Candler bought
the formula for this oral drug, and with clever marketing tactics, he made Coca -Cola one of the leading
products in the market. carbonated soft drinks market in the twentieth century. Coca-Cola's name is
derived from the drink's two original ingredients: cola seeds (high in caffeine) and coca leaves. Today,
the original Coca-Cola recipe remains a trade secret, and is known to only a handful of workers.
Despite this, various experimental formulations have been widely published.


In addition to providing the main product is the carbonated drink Coke is also known for a series of

famous campaigns around this infamous drink. For example: Love story, Taste the Feeling, Super
Bowl 2012, Share A Coke,…
Behind the success of Coke they have a method of marketing usually Coca-Cola for their product. Most
companies usually categorize their marketing strategies into different categories. For Coca-Cola, market
segmentation, targeting, and positioning are the three essential elements that help the company
effectively serve its target customers.


1.2 STP strategy
Is a famous marketing model applied by leading companies around the world and Coca-Cola is
no exception.
STP marketing strategy consists of 3 stages:
_S (Market Segmentation) market segmentation:
Demographic segmentation: Their customer segmentation is from 10 to 50 years old, mainly and young
people between the ages of 15 and 35 are supported by both men and women according to the survey.
Due to its low cost, easy access and popularity, it is suitable for most students, students, office workers
and workers.
Psychographic segmentation: The product is customer-oriented and positioned as a refreshment
product, customers come to the product to seek refreshment, satisfy their thirst, sometimes it is a soft
drink, etc. Their affirmation of life style. Coke chose the red color associated with their brand to attract
the attention of users who often use it to convey messages about happiness, family and life experiences.
Their products often emphasize the emotions of viewers with family images around, people from all
over the world regardless of ethnicity and color together drink Coke.
Geographic segmentation: Because it is a cheap product and a popular product in the market, Coke has
a large network all over the world, so the product is distributed and directed to all countries, big cities,
where the focus is. There are many residential areas, restaurants, restaurants, tourist areas, water
vending machines, etc. because of its popularity, with reasonable prices for most consumers.
Behavioral segmentation: This is the last element, but the company's marketers consider it the
starting point to form this market segment. Because it focuses on the knowledge, reactions, and
attitudes of customers towards customers. their products.

_T (Marketing Targeting) choose the target market:
With a presence in the entire market worldwide, the company's goal is to satisfy the basic needs
of customers, from young to old, from ordinary people to those who care about safety. food
safety and related health problems.
Their main target market is young customers 10-25 years old and a secondary market is 25-40 years
old. The company positions their product as a product with a delicious, rich, refreshing taste, and at
the same time they focus on health-conscious customers with variations such as: Coca ko calories.
Or another product that focuses mainly on youth and students with a more active product is Sprite.
_P (Positioning) positioning the product towards the target market:
With Coca-Cola, they position their product as the world's leading beverage product associated with the
image of gathering and being happy with family and friends when enjoying moments and meals
together. In addition, they also position themselves as a product of high quality, safe for the health of
consumers. They position customers when they want to find a high quality carbonated beverage
product, they have to think of Coca. They position themselves as a brand that brings satisfaction and
positivity to customers, meeting the needs and preferences of global customers.
In a market with many products and strong competitors like Pepsi, an effective positioning strategy will
make the product stand out from other competitors' products and create curiosity from customers row.
1.3 Aims: Analyse the impact of culture on consumer behaviour
The objective of this report is to analyze the impact of cultural factors in Vietnam on consumer
behavior when using Coca-Cola products.


Hofstede's cultural dimensions assess how culture in Vietnam affects consumers' purchasing decisions.
Coca-Cola's strategies have positioned its image in the eyes of Vietnamese consumers to maintain
its simplicity and core values.
2.Body part
2.1 Definition of culture and related factors
Culture is one of the most important factors that directly affects businesses in general and marketing
activities and strategies in particular. Some of the key cultural factors that influence marketing include:

_Language: Language directly affects the way sellers and customers communicate, affecting the way
they communicate for each country, territory, and geographical region because it is impossible to use a
different language. to market to a market with no knowledge of that language. It directly affects the way
a company conveys and interprets its message to its customers.
_Personal Values - Culture has a big impact on the values people hold. Not everyone has the same
style, role model, idol, etc. Each individual is a separate being.
This directly affects product design, placement, advertising, etc.
_Customs – Each country and region has its own unique and distinct cultures, customs and traditions.
A smart marketing strategy must consider these factors when determining the products to introduce,
how to introduce them, and how to promote them to suit the customs of each different region.
_Diversion (food, art, value): Marketers often promote their products based on the need, desire to
experience that product. But this factor directly affects the development of a marketing strategy.

2.2 Definition of consumer behaviour
Consumer behavior is the study of how individual customers, groups or organizations select, buy, use,
and dispose ideas, goods, and services to satisfy their needs and wants.
The study of consumer behavior is very important, it helps marketers know what influences
consumer buying factors. At the same time, it helps marketers figure out how to influence
consumers in the most optimal way leading to customers' purchasing decisions. Make it easier for
marketers to plan their marketing.
The buying behavior of customers is often influenced by four main factors: cultural, social, personal,
and psychological. Buying behavior revolves around these 4 factors mainly to base on to know how to
approach and serve customers more effectively. Marketers must grasp the trend, use each strategy and
factor suitable for each different customer to achieve the most optimal effect. To market in the best
way, we must understand our customers, understand the market to discover the latest trends and seize
opportunities to give the business an advantage.
_Cultural factor: This is the first and basic factor to consider when a business wants to penetrate this market
because each country and territory has its own culture and characteristics. Marketers need to design
marketing and advertising strategies suitable to the culture of each place, carrying the message and national
identity. In addition, social class is also influenced by cultural factors, this class is not only based on personal

income but also the difference by education and education level, but they will have a different view of
products. Marketers need to pay attention to this to have a separate treatment to suit each class.


_Social factors: Buying behavior is sometimes also influenced by factors such as family, social status, ....

To achieve high effectiveness, marketers must identify the right audience and family members.
Families, groups have decision-making power, have great influence on the purchase of different
products and services. In addition, buyers often choose products that speak to social status, and
marketers need to clearly define the product lines and brands that do that.

_Personal factors: These factors include demographic factors such as age, gender, income,
occupation,...depending on the views and preferences of each person. Each person, each profession,
each lifestyle, each economic situation will have different shopping needs. Marketers often select
groups of customers according to their life cycle and life circumstances as their target market.
_Psychological factors: Customers may have many different needs at different points in their lives.
Some needs may stem from fatigue, stress, hunger, thirst, etc. Others may stem from a need for
recognition and esteem. In addition, the urge is also a motivating factor to stimulate buying behavior.
In addition, the surrounding factors at the time of purchase, the time factor and the perception of the
product and the evaluation after use are also important factors affecting consumer behavior. Consumer
behavior always changes with time, surroundings, income level. Consumers can make a decision to buy
a product based on different buying motives. Therefore, marketers need to influence consumer
behavior to increase customer purchases.
2.3 Culture of the country (That you chose to analyse)
The Coca-Cola Company often has their campaigns and strategies in place to better respond to local
ideas and cultures.
The Hofstede model of national culture helps Coca-Cola companies better understand the culture of a
particular country. The Hofstede model focuses attention on six specific elements of culture that help
companies make important strategic decisions and design optimal marketing plans and activities.

Hofstede cultural dimensions


Vietnamese culture in the direction of Hofstede is measured in 6 dimensions including:
_Power distance index (PDI): This aspect refers to the ranks of individuals in unequal society. Power
distance is the degree to which less powerful members of organizations accept that power is distributed
unequal. In Vietnam people accept this system, which reflects inherent inequality, subordinates expect
to be told what to do, and the ideal boss is a benevolent autocrat. The fact that lower-level employees
do not comply with their superiors is not supported in Vietnam. This is very evident in the environment
around us such as in the family, school, classroom, ...
The Coca-Cola Company has a very well organized, hierarchical system. This helps employees feel
trusted, motivated to strive in the company to be able to achieve higher ranks at work, and at the
same time helps them optimize work performance in the most optimal way.
_Individualism vs. collectivism (IDV): this aspect is the degree of interdependence that a society maintains
between its members. In Vietnam is a collectivist society. This is shown by the close connection between
family members and clans. In Vietnam, everyone in a collective must always be closely associated with the
collective or family if they are one of its members and they must be responsible for the collective. That helps
to improve the responsibility, the relationship between the team members.
The Coca-Cola Company maintains a combination of both individualism and collectivism in their
corporate culture despite being part of a collectivist society in Vietnam, which helps to maximize
efficiency. Employee productivity helps drive business performance in a reasonable way. At the
same time, individuals and groups who have achieved and are highly appreciated are honored and
rewarded accordingly.
_Masculinity vs femininity (MAS): In this respect “Masculinity” is defined as the result, material
reward, success that the individual achieves. On the contrary, "Feminity" is about cooperation, caring
about other struggling individuals. In a country where there is a tendency to masculinity, women are
often not respected in society, their work is often associated with the images of cooking, housework,
and taking care of children while men have to do big things and have a career. have a voice in society.
In Vietnam as a country with a focus on working to live, people value equality, solidarity and high quality in
their life and work. Vietnam has long been considered a country that respects gender equality, they are

challenged in many different fields from education, health, culture, science and technology,....
_Uncertainty avoidance (UAI): This high index indicates the degree to which members of the
community adhere to a common rule, rule or rule that everyone is aware of. At low levels, they often see
openness, no rules, many conflicting opinions and often controversy, tend to develop freely, have little
tutoring, are willing to take risks.
In Vietnam, people are often not afraid of challenges and failures, they see those failures as lessons to
overcome and do better next time. That is a very positive point, Vietnamese people are often quite quick
to adapt to other environments. For example, a lot of young people of student age are always trying to
start a career by themselves with all kinds of jobs such as selling clothes, cafes, fashion shops, etc. They
want to try themselves to gain experience. , take risks, fail, and be willing to redo and learn from
previous mistakes.
_Long-term orientation vs. short- term orientation(LTO): In this aspect describes the association
related from the past to the future. When this index is low, it shows that the society preserves the old
traditions and is a highly stable society, but this society will find it very difficult to develop
economically and vice versa. , a society with this high index means that this society is interested in the
long-term process, adapting quickly, focusing on problem solving.
In Vietnam, belongs to the group of pragmatic culture, we always direct the country to develop in
the future as the top goal. Vietnam has long- term policies in intervals of 3-5 years 5-10 years.
Vietnamese people often value results, and they only focus on achieving the best results. In family
culture, parents always invest as much in their children's future.


_Indulgence vs restraint (IND): In this respect, the degree of social integration of young children, defined as
the extent to which people try to control their desires and impulses based on the way in which they have
been taught . Vietnamese culture is said to be restrained, customers tend to be skeptical and pessimistic
about everything. They do not focus much on leisure time, well control the satisfaction of their own desires.
They are limited by social norms, they feel that it is wrong to satisfy their own needs.

2.4 Consumer behaviour in purchasing that product in VietNam
The buying behavior of customers when using Coca-Cola products in Vietnam is influenced by many

factors. With extensive operations in many countries in Asia such as in China, India, Japan,
Philippines, Korea, Southeast Asia, Coca-Cola company needs the right strategies, touching close with
customers to create optimal sales, promote customer buying behavior. We will focus on analyzing the
factors affecting the buying behavior of Coca-Cola of customers in Vietnam.
_Social factor: Coca_Cola is considered a popular item with all walks of life with an extremely cheap
price and is suitable for students, workers ~8000VND~12000VND for 1 can of Coca to Refreshing and
energizing for work and study. With a variety of program activities to attract customers, such as the
program "Dua tai am thuc" with many activities, providing information about knowledge about food
and health to consumers. In addition, in 2014, a campaign that caused fever at that time that no soft
drink company had used before was Printing usernames on Coca-Cola cans. This campaign is also
widely known as “Share a Coke”. This is also considered the most successful campaign of Coca-Cola.
This campaign created a strong movement among young people in just a short time. With the help of
today's technology and communication, Coca has achieved a lot of success and better positioned its
products. themselves in the eyes of Vietnamese consumers. The idea of this campaign helps family
members have more family reunion moments, share memorable moments with Coca. With the image of
a Coke can with the name of a relative, a friend you haven't seen for a long time, give him/her a Coca
can with their name on it, it will make the relationship of both of you better.


During this campaign, the content of this campaign is always changed to suit more consumers.
And not only in Vietnam, this campaign has achieved global success with 378,000 coke bottles
produced with their own names printed on the bottles, 76,000 models of bottles created and shared on
facebook. This has made the traffic to the fanpage of coca-cola increase by 87%.
In addition, with a retail strategy in each grocery store, water store, convenience store, restaurant,
cinema, etc. Or with the message "Coca-Cola ket noi nha nha, Tet them ron ra" and always present in
traditional holidays and major holidays of Vietnam, making the image of Coca cans closer to each
Vietnamese person.

_Psychological factors: Coca-Cola Company has smart strategies to capture the psychology of Vietnamese
customers. They build their brand by continuous interaction with customers in the community, They promote

the buying motivation of each specific individual such as stress, fatigue, thirst are unsatisfied individual
needs , that drives customers to think of Coca as a beverage through campaigns and they position their
products in the minds of customers. The campaign "Trao Coca, ket noi ban be" has generated more than
400,000 conversations around the above topic with more than 548,000 search results for the "Share a Coke"
campaign. In addition, Coca-Cola always leaves a mark in customers' minds with some images such as fonts,
exclusive water bottle shapes, and retail prices that are always unchanged.


_Personal factors: With the main target of Coca products in Vietnam is from under 18~65 years old,
with cheap price suitable for the salary of the majority of Vietnamese workers (~6.5 million VND-7
million VND). VND) is loved by both genders, Coca always gives users the most comfortable feeling.
With its convenience and compactness, you can easily carry it around or with its variety, you can buy it
anywhere, for example, grocery store, water bar, restaurant, etc. you quench thirst, refresh, create a
sense of appetite and excitement when used in meals, rehydrate after sports activities.
When making a decision to buy Coca-Cola products, consumers need to go through a 5-step
buying process:
The first is the need of customers to find a product that can quench their thirst with good quality and
cheap price (7000-10000VND) then how to let consumers know about the product, receive information
that Coca can meet their needs through many different communication channels. After that, the
customer will make choices, attributes that Coca has such as price, customer service, ... and then the
customer makes a decision to buy the product. And there will be negative or positive reactions from
customers and the way the company reacts then will determine the total number of future customers.

2.5 Analyse the impact of culture on consumer behaviour in VietNam.
Like many other companies, the cultural factor is the most important factor for the company to come up with
marketing strategies that best suit the culture of Vietnam. With a strong competitor like Pepsi, when the taste
of food in the South and the North is different. In the South, their taste is usually stronger, more sweet, they
will prefer Pepsi, and in the North, they will prefer Coca. So how can Coca regain market share and become
the number 1 favorite soft drink name in Vietnam? In Vietnam, Tet is considered the most precious holiday
of the whole nation, they believe that on this day is the day of harmony between heaven and earth, people and

gods, also the first occasion of the year to welcome everyone's luck. gather together. Knowing that, many
media campaigns are launched on the occasion of Tet, but Coca-Cola is still a brand that retains an
unmistakable distinction through each campaign. Keeping the original core values, Coca -Cola constantly
brings the image of a new Tet, filled with laughter and happiness. Coca-Cola with TVC advertises "For Tet
with love" />

_According to Hofstede's theory, Vietnam is a society with gender equality, everyone from men and
women, young and old, is eager to prepare and edit everything to match the Tet theme. Men and
women exchange Coca-Cola bottles to show their affection for each other.
With a simple image, everyday life is close but with a warm and happy atmosphere that makes customers
feel when using the product with their loved ones, they will see the love that needs to be cherished and
shared. And right after TVC was launched, it received positive responses from consumers. The image of
simple moments when family gathers, friends who haven't seen each other for a long time have the
opportunity to sit together and chat, making viewers feel close, seeing that they are being reminded of their
own stories arrive. Coca-Cola's advertisements always carry an image with a bright smile and a happy face,
expressing the joyful atmosphere of the traditional Tet holiday in Vietnam.
In addition, Coca-Cola also encourages people to store and share Tet images and moments with their family
through the contest "Bat khoanh khac, Tet yeu thuong" at Coca-Cola's fanpage in Vietnam with each photo
with the rope that tightens people closer together, creating a wonderful and meaningful Tet picture. Not
only that, Coca-Cola has also expanded the campaign "Chuyen xe yeu thuong" to be able to roll all over the
road in Vietnam so that it can capture every moment on every road it passes through, contributing to the
Busier, more engaged and happier. Coca-Cola has shown interest in understanding its customers with
creative images and videos that still retain the beauty of Vietnamese culture.
The success of this campaign has been voted by everyone for Coca-Cola as one of the two most
impressive advertising brands at Millward Brown Vietnam. This is perhaps the clearest proof that
Coca-Cola has really succeeded in building advertising campaigns about cultural elements that go into
the hearts of consumers in Vietnam.

It shows that Coca-Cola's development potential in Vietnam is still great, but they will never forget
the core value of their products.

The success of Coca-Cola shows that cultural factors are really important in stimulating consumer
buying behavior.
Coca-Cola is a company that is very careful, detailed in each of their marketing campaigns, but there are
still mistakes in their campaigns due to misunderstanding the local culture. 1972 when Coca-Cola started
selling in the Chinese market with their product name read as "Coca-Cola". But their mistake not to


mention that the Chinese pronunciation is "Kekoukela"' which means "Bite the Wax Tadpole" or
"female horse stuffed with wax", which caused a wave of protests from the Chinese. . Realizing their
mistake, the company's experts had to find more than 40,000 homonyms to come up with a new name
with the pronunciation "Kokoukole" which means "Happiness in the mounth".
=> This shows that Vietnamese society is a collective society, living according to the theory of
Hofstede. Coca captures the Vietnamese market, they build the image of their products attached and
friendly to the image of Vietnamese people every Tet to spring. Positioning in the minds of consumers
all important events, this Tet holiday of Vietnamese people cannot lack the image of Coca-Cola.
3. Conclusion
In general, there are many factors affecting the buying behavior of consumers, it is important for marketers
to bring positive satisfaction to existing customers by maintaining stability in quality and service. , price,
etc. Also, try to attract new buyers by offering new features and features of the product. An effective
positioning strategy will make the product stand out from other competitors' products and create curiosity
from customers. From there, position your image in the mind of the customer.
At the same time, carefully study the market, customers, and factors affecting customer shopping
behavior to come up with the best marketing strategies for the company to bring in optimal sales.
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